Reference no: EM13576148

Cindy (age 40) and Don (age 39) Cowen are married. Don's 17 year old son from a former marriage lives with them. They also fully support Cindy's mother, Ella who lives with them. Ella's only income during 2013 was interest of 2,500. Cindy works as a retail manager and Don is a self-employed electrician. Their 2013 tax and other information are as follows:

Salary - Cindy	50,000
Federal withholding on salary	18,000
State withholding on salary	2,000
Interest income on bonds:
Issued by Webster Bank	3,000
State of Connecticut	2,000
Savings account interest	700
Dividends from RGR, Inc. (all are non-qualified)	5,000
Value of employer provided medical insurance	3,000
Value of premiums for $50,000 of group term life insurance	500
Cindy's mother's medical expenses paid by Cindy	9,500
Inheritance from Cindy's father's estate	7,500
Personal loan obtained to pay credit card debt	20,000
Interest paid on personal loan	1,000
Child support received from Don's ex-wife	8,000
Alimony paid to Don's ex-wife	3,400
Donations to church Real Estate taxes on primary residence	1,500 4,500
Mortgage interest on primary residence (<$1M)	3,000
Don's business revenues	40,000
Don's business expenses	16,750

Required: Determine the following for the Cowen's 2013 tax year:

1. Exclusions (if any)                                                         $ ___________

1. Gross income (excluding Don's SE income)                   $ ___________

1. Don's net self-employment income                               $ ___________

1. Adjusted gross income                                                 $ ___________

1. Itemized deduction or standard deduction amount      $ ___________

1. Deduction for exemptions                                             $ ___________

1. Taxable income                                                             $ ___________

1. Income tax liability                                                        $ ___________

1. Self-employment tax liability                                         $ ___________

1. Net tax due/(refund)                                                     $ ___________